| Significant Accounting Policies | Note 2—Significant Accounting Policies Principles of consolidation and basis of presentation The Company’s consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the operating results of its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Revision of Previously-Issued Financial Statements In connection with the preparation of its 2019 annual financial statements, the Company identified an error in its historical provision for income taxes, which resulted in an understatement of its tax provision and deferred tax liabilities in its previously-issued financial statements. The error resulted from the recognition of a foreign deferred tax asset that should not have been recognized for the difference in international entity income for statutory purposes and international entity income included on the consolidated income tax provision. There was no corresponding domestic benefit of this incremental foreign tax expense due to the U.S. entity being subject to a full valuation allowance. The Company evaluated the effect of these errors on prior periods under the guidance of SEC Staff Accounting Bulletin (“SAB”) No. 99, Materiality, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements The following tables present the effect of the revision for the financial statement line items adjusted in the affected periods, including the $1.0 million adjustment to accumulated deficit at January 1, 2017 to correct for those tax errors that originated prior to 2017.
Consolidated Balance Sheet
December 31, 2018
As Previously Reported
Adjustments
As Revised
(in thousands)
Other assets
$
36,865
$
(387
)
$
36,478
Total assets
$
493,868
$
(387
)
$
493,481
Accrued expenses and other current liabilities
$
24,705
$
(226
)
$
24,479
Total current liabilities
$
159,229
$
(226
)
$
159,003
Deferred tax liabilities, net
$
1,116
$
2,141
$
3,257
Total liabilities
$
167,912
$
1,915
$
169,827
Accumulated deficit
$
(130,594
)
$
(2,302
)
$
(132,896
)
Total stockholders' equity
$
321,569
$
(2,302
)
$
319,267
Total liabilities and stockholders' equity
$
493,868
$
(387
)
$
493,481
Consolidated Statements of Operations
Year Ended December 31, 2018
As Previously Reported
Adjustments
As Revised
(in thousands, except per share data)
Provision for income taxes
$
162
$
910
$
1,072
Net loss
$
(27,866
)
$
(910
)
$
(28,776
)
Net loss attributable to BlackLine, Inc.
$
(27,804
)
$
(910
)
$
(28,714
)
Basic net loss per share attributable to BlackLine, Inc.
$
(0.52
)
$
(0.01
)
$
(0.53
)
Diluted net loss per share attributable to BlackLine, Inc.
$
(0.52
)
$
(0.01
)
$
(0.53
)
Year Ended December 31, 2017
As Previously Reported
Adjustments
As Revised
(in thousands, except per share data)
Provision for income taxes
$
208
$
357
$
565
Net loss
$
(33,051
)
$
(357
)
$
(33,408
)
Net loss attributable to BlackLine, Inc.
$
(33,051
)
$
(357
)
$
(33,408
)
Basic net loss per share attributable to BlackLine, Inc.
$
(0.63
)
$
(0.01
)
$
(0.64
)
Diluted net loss per share attributable to BlackLine, Inc.
$
(0.63
)
$
(0.01
)
$
(0.64
)
Consolidated Statements of Comprehensive Loss
Year Ended December 31, 2018
As Previously Reported
Adjustments
As Revised
(in thousands)
Net loss
$
(27,866
)
$
(910
)
$
(28,776
)
Comprehensive loss
$
(27,626
)
$
(910
)
$
(28,536
)
Comprehensive loss attributable to BlackLine, Inc.
$
(27,696
)
$
(910
)
$
(28,606
)
Year Ended December 31, 2017
As Previously Reported
Adjustments
As Revised
(in thousands)
Net loss
$
(33,051
)
$
(357
)
$
(33,408
)
Comprehensive loss
$
(33,073
)
$
(357
)
$
(33,430
)
Comprehensive loss attributable to BlackLine, Inc.
$
(33,073
)
$
(357
)
$
(33,430
)
Consolidated Statements of Stockholders' Equity
Year Ended December 31, 2018
As Previously Reported
Adjustments
As Revised
Accumulated Deficit
(in thousands)
Balance at December 31, 2017
$
(102,790
)
$
(1,392
)
$
(104,182
)
Net loss attributable to BlackLine, Inc.
$
(27,804
)
$
(910
)
$
(28,714
)
Balance at December 31, 2018
$
(130,594
)
$
(2,302
)
$
(132,896
)
Total Equity
Balance at December 31, 2017
$
317,305
$
(1,392
)
$
315,913
Net loss attributable to BlackLine, Inc.
$
(27,804
)
$
(910
)
$
(28,714
)
Balance at December 31, 2018
$
321,569
$
(2,302
)
$
319,267
Year Ended December 31, 2017
As Previously Reported
Adjustments
As Revised
Accumulated Deficit
(in thousands)
Balance at December 31, 2016
$
(69,667
)
$
(1,035
)
$
(70,702
)
Balance at January 1, 2017
$
(69,739
)
$
(1,035
)
$
(70,774
)
Net loss attributable to BlackLine, Inc.
$
(33,051
)
$
(357
)
$
(33,408
)
Balance at December 31, 2017
$
(102,790
)
$
(1,392
)
$
(104,182
)
Total Equity
Balance at December 31, 2016
$
309,077
$
(1,035
)
$
308,042
Balance at January 1, 2017
$
309,077
$
(1,035
)
$
308,042
Net loss attributable to BlackLine, Inc.
$
(33,051
)
$
(357
)
$
(33,408
)
Balance at December 31, 2017
$
317,305
$
(1,392
)
$
315,913
Consolidated Statements of Cash Flows
Year Ended December 31, 2018
As Previously Reported
Adjustments
As Revised
(in thousands)
Net loss attributable to BlackLine, Inc.
$
(27,804
)
$
(910
)
$
(28,714
)
Net loss
$
(27,866
)
$
(910
)
$
(28,776
)
Deferred income taxes
$
(923
)
$
1,136
$
213
Accrued expenses and other current liabilities
$
4,417
$
(226
)
$
4,191
Year Ended December 31, 2017
As Previously Reported
Adjustments
As Revised
(in thousands)
Net loss attributable to BlackLine, Inc.
$
(33,051
)
$
(357
)
$
(33,408
)
Net loss
$
(33,051
)
$
(357
)
$
(33,408
)
Deferred income taxes
$
(272
)
$
357
$
85
Leases On January 1, 2019, the Company adopted Accounting Standards Codification No. 842, Leases Financial information related to periods prior to adoption are as originally reported under ASC 840, Leases The new standard provides several optional practical expedients in transition. The Company elected the package of three practical expedients permitted under the transition guidance, which eliminates the require ment to reassess whether a contract contains a lease and lease classification. The Company has also made accounting policy elections, including a short-term lease exception policy, permitting the Company to not apply the recognition requirements of this standard to short-term leases (i.e. leases with expected terms of 12 months or less), and an accounting policy to account for lease and certain non-lease components as a single component for certain classes of assets. The portfolio approach, which allows a lessee to account for its leases at a portfolio level, was elected for certain equipment leases in which the difference in accounting for each asset separately would not have been materially different from accounting for the assets as a combined unit. The Company has leases for office space, equipment, and data centers. The Company’s leases have remaining initial lease terms of less than one year to approximately six years, some of which include options to extend the leases for up to ten years, and some of which include options to terminate the leases within one year. The Company determines whether an arrangement is a lease, or contains a lease, at inception if the Company is both able to identify an asset and can conclude it has the right to control the identified asset for a period of time. Leases are included in operating lease ROU assets and operating lease liabilities on the Company’s consolidated balance sheets. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. ROU assets represent the Company’s right to control an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at commencement date in determining the discount rate used to present value lease payments. The Company used the incremental borrowing rate on January 1, 2019 for operating leases that commenced on or prior to that date. The Company uses the incremental borrowing rate at the commencement date, or remeasurement date, for operating leases. The incremental borrowing rate used is estimated based on what the Company would be required to pay for a collateralized loan over a similar term. Additionally, the Company used the portfolio approach when applying the discount rate selected based on the dollar amount and term of the obligation. The Company’s leases typically do not include any residual value guarantees, bargain purchase options, or asset retirement obligations. The Company’s lease terms are only for periods in which it has enforceable rights. A lease is no longer enforceable when both the lessee and the lessor each have the right to terminate the lease without permission from the other party with no more than an insignificant penalty. The Company’s lease terms are impacted by options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company generally uses the base, non-cancelable lease term when determining the lease assets and liabilities. The Company’s agreements may contain variable lease payments. The Company includes variable lease payments that depend on an index or a rate and excludes those which depend on facts or circumstances occurring after the commencement date, other than the passage of time. Additionally, for certain equipment leases, the Company applies a portfolio approach to effectively account for the operating lease ROU assets and operating lease liabilities. Judgment is required when determining whether any of the Company’s data center contracts contain a lease. The Company concluded a lease exists when the asset is specifically identifiable, substantially all the economic benefit of the asset is obtained, and the right to direct the use of the asset exists during the term of the lease. Redeemable non-controlling interest The Company's Japanese subsidiary (“BlackLine K.K.”) is not wholly owned. The agreements with the minority investors of BlackLine K.K. contain redemption features whereby the interest held by the minority investors are redeemable either (i) at the option of the minority investors or (ii) at the option of the Company, both beginning on the seventh anniversary of the initial capital contribution. If the interest of the minority investors were to be redeemed under these agreements, the Company would be required to redeem the interest based on a prescribed formula derived from the relative revenue of BlackLine K.K. and the Company. The balance of the redeemable non-controlling interest is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest's share of earnings or losses and other comprehensive income or loss, or its estimated redemption value. The resulting changes in the estimated redemption amount (increases or decreases) are recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional paid-in-capital. These interests are presented on the consolidated balance sheets outside of equity under the caption "Redeemable non-controlling interest." Convertible Senior Notes The Company accounts for the issued Convertible Senior Notes (the “Notes”) as separate liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the difference between the proceeds and the fair value of a similar liability that does not have an associated convertible feature. This difference represents a debt discount that is amortized to interest expense over the term of the Notes using the effective interest rate method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The Company has allocated issuance costs incurred to the liability and equity components. Issuance costs attributable to the liability component are being amortized to expense over the respective term of the Notes, and issuance costs attributable to the equity components were netted with the respective equity component in additional paid-in capital. Use of estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, primarily those related to determining the stand alone selling price (“SSP”) for separate deliverables in the Company’s subscription revenue arrangements, allowance for doubtful accounts, fair value of assets and liabilities assumed in a business combination, recoverability of goodwill and long-lived assets, useful lives associated with long-lived assets, income taxes, contingencies, fair value of contingent consideration, fair value of convertible senior notes, redemption value of redeemable non-controlling interest, and the valuation and assumptions underlying stock-based compensation and common stock warrants. These estimates are based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances. Actual results could differ from those estimates. Segments Management has determined that the Company has one operating segment. The Company’s chief executive officer, who is the Company’s chief operating decision maker, reviews financial information on a consolidated and aggregate basis, together with certain operating metrics principally to make decisions about how to allocate resources and to measure the Company’s performance. Cash and cash equivalents The Company considers all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash includes cash held in checking and savings accounts. Cash equivalents are comprised of investments in money market mutual funds. The carrying value of cash and cash equivalents approximates fair value. Restricted cash Included in prepaid expenses and other current assets and other assets at December 31, 2019 and in other assets at December 31, 2018 was cash totaling Investments in Marketable Securities The Company’s marketable securities consist of commercial paper, corporate bonds, and U.S. treasury securities. The Company classifies its marketable securities as available-for-sale at the time of purchase, and the Company reevaluates such classification at each balance sheet date. All marketable securities are recorded at their estimated fair value, with any unrealized gains and losses reported as a component of stockholders’ equity until realized or until a determination is made that an other-than-temporary decline in market value has occurred. Impairments are considered to be other than temporary if they are related to deterioration in credit risk or if it is likely the Company will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value deemed to be other than temporary are determined based on the specific identification method and are reported in other income (expense), net in the consolidated statements of operations. The Company classifies its investments in marketable securities in current assets as the investments are available for use, if needed, in current operations. Accounts receivable and allowance for doubtful accounts Accounts receivable are recorded at the invoiced amount, do not require collateral and do not bear interest. The Company estimates its allowance for doubtful accounts by evaluating specific accounts where information indicates the Company’s customers may have an inability to meet financial obligations, such as bankruptcy and significantly aged receivables outstanding. Concentration of credit risk and significant customers Financial instruments that potentially subject the Company to a significant concentration of credit risk consist of cash and cash equivalents, investments in marketable securities and accounts receivable. The Company maintains the majority of its cash balances with one major commercial bank in interest bearing accounts, which exceeds the Federal Deposit Insurance Corporation, or FDIC, federally insured limits. The Company invests its excess cash in money market mutual funds, commercial paper, corporate bonds, and U.S. treasury securities. To date, the Company has not experienced any impairment losses on its investments. For the years ended December 31, 2019, 2018, and 2017, no single customer comprised 10% or more of the Company’s total revenues. No single customer had an accounts receivable balance of 10% or greater of total accounts receivable at December 31, 2019 or 2018. Property and equipment Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which is generally three to five years for machinery and equipment and purchased software and five years for furniture and fixtures. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or seven years. Expenditures for repairs and maintenance are expensed as incurred, while renewals and betterments are capitalized. Depreciation expense is charged to operations on a straight-line basis over the estimated useful lives of the assets. Capitalized internal-use software costs The Company accounts for the costs of computer software obtained or developed for internal use in accordance with ASC 350, Intangibles—Goodwill and Other During the years ended December 31, 2019, 2018, and 2017, the Company amortized $4.7 million, $3.9 million, and $2.7 million, respectively, of internal-use software development costs to subscription and support cost of revenues. At December 31, 2019 and 2018, the accumulated amortization of capitalized internal-use software development costs was $14.3 million and $9.5 million, respectively. The Company capitalizes certain implementation costs incurred in a hosting arrangement that is a service contract. These capitalized costs exclude training costs, project management costs, and data migration costs. Capitalized software implementation costs are amortized using the straight-line method over the terms of the associated hosting arrangements. Amortization of internal-use software implementation costs to subscription and support costs of revenues was not material for the year ended December 31, 2019. During the years ended December 31, 2018 and 2017, the Company had no amortization of internal-use software implementation costs. Intangible assets Intangible assets primarily consist of acquired developed technology, customer relationships, and trade names, which were acquired as part of the 2013 Acquisition and the Runbook Acquisition. The Company determines the appropriate useful life of its intangible assets by performing an analysis of expected cash flows of the acquired assets. Intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from one to ten years. Impairment of long-lived assets Management evaluates the recoverability of the Company’s property and equipment, finite-lived intangible assets and capitalized internal-software costs when events or changes in circumstances indicate a potential impairment exists. Events and changes in circumstances considered by the Company in determining whether the carrying value of long-lived assets may not be recoverable include, but are not limited to, significant changes in performance relative to expected operating results, significant changes in the use of the assets, significant negative industry or economic trends, and changes in the Company’s business strategy. Impairment testing is performed at an asset level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (an “asset group”). In determining if impairment exists, the Company estimates the undiscounted cash flows to be generated from the use and ultimate disposition of the asset group. If impairment is indicated based on a comparison of the assets’ carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company determined that there were no events or changes in circumstances that potentially indicated that the Company’s long-lived assets were impaired during the years ended December 31, 2019, 2018, and 2017. Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. The Company tests goodwill for impairment in accordance with the provisions of Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other ASC 350 provides that an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then additional impairment testing is not required. However, if an entity concludes otherwise, then it is required to perform the first of a two-step impairment test. The first step involves comparing the estimated fair value of a reporting unit with its book value, including goodwill. If the estimated fair value exceeds book value, goodwill is considered not to be impaired and no additional steps are necessary. If, however, the fair value of the reporting unit is less than book value, then, under the second step, the carrying amount of the goodwill is compared with its implied fair value. The estimate of implied fair value of goodwill may require valuations of certain internally-generated and unrecognized intangible assets. If the carrying amount of goo dwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. The Company has one reporting unit and it tests its goodwill for impairment annually, during the fourth quarter of the calendar year. At December 31, 2019 and 2018, the Company used the quantitative approach to perform its annual goodwill impairment test. The Company’s fair value significantly exceeded the carrying value of its net assets and, accordingly, goodwill was not impaired. Fair value of financial instruments ASC 820, Fair Value Measurement, Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following:
Level 1:
Quoted prices in active markets for identical or similar assets and liabilities.
Level 2:
Quoted prices for identical or similar assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical or similar assets or liabilities.
Level 3:
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. At December 31, 2019 and 2018, the carrying values of cash equivalents, accounts receivable, accounts payable, and accrued expenses, approximate fair values due to the short-term nature of such instruments. Contingent consideration relating to the 2013 Acquisition (see Note 13) is recorded as a liability and is measured at fair value each period, based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The valuation of contingent consideration uses assumptions management believes would be made by a market participant. Management assesses these estimates on an ongoing basis as additional data impacting the assumptions becomes available. Changes in the fair value of contingent consideration related to updated assumptions and estimates are recognized within general and administrative expenses in the consolidated statements of operations. The Company determined the fair value of the contingent consideration by discounting estimated future taxable income. The significant inputs used in the fair value measurement of contingent consideration are the timing and amount of taxable income in any given period and determining an appropriate discount rate, which considers the risk associated with the forecasted taxable income. Significant changes in the estimated future taxable income and the periods in which they are generated would significantly impact the fair value of the contingent consideration liability. Certain assets, including goodwill and long-lived assets, are also subject to measurement at fair value on a non-recurring basis if they are deemed to be impaired as a result of an impairment review. For the years ended December 31, 2019, 2018, and 2017, no impairments were identified on those assets required to be measured at fair value on a non-recurring basis. Revenue recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that can include various combinations of subscription and support services and professional services, which are generally capable of being distinct and accounted for as separate performance obligations. The Company’s agreements do not contain any refund provisions other than in the event of the Company’s non-performance or breach. The Company determines revenue recognition through the following steps:
•
Identification of the contract, or contracts, with a customer
•
Identification of the performance obligations in the contract
•
Determination of the transaction price
•
Allocation of the transaction price to the performance obligations in the contract
•
Recognition of revenue when, or as, the Company satisfies a performance obligation Subscription and support revenue – Customers pay subscription and support fees for access to the Company’s SaaS platform generally for a one-year Subscription and support revenue also includes software and related maintenance and support fees on legacy BlackLine solutions and Runbook Company B.V. (“Runbook”) software. Software licenses for legacy BlackLine solutions and Runbook software provide the customer with a right to use the software as it exists when made available to the customer. Customers may have purchased perpetual licenses or term based licenses, which provide customers with the same functionality and differ mainly in the duration over which the customer benefits from the software. Software licenses are bundled with software maintenance and support, and the transaction price of the contract is allocated between the software licenses and the software maintenance and support. Maintenance and support convey rights to new software and upgrades released over the contract period and provide support, tools, and training to help customers deploy and use products more efficiently. Software licenses are considered distinct performance obligations and revenue is recognized at a point in time when control of the license has transferred and the license period commences. Maintenance and support are distinct performance obligations that are satisfied over time, and revenue is recognized ratably over the contract period as customers simultaneously consume and receive benefits. Professional services revenue – Professional services consist of implementation and consulting services to assist the Company’s customers as they deploy its solutions. These services are considered distinct performance obligations. Professional services do not result in significant customization of the subscription service. The Company applies the practical expedient to recognize professional services revenue when it has the right to invoice based on time and materials incurred. Significant judgments – The Company’s contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is also required to determine the SSP for each distinct performance obligation. The Company typically has more than one SSP for its SaaS solutions and professional services. Additionally, management has determined that there are no third-party offerings reasonably comparable to the Company’s solutions. Therefore, the Company determines the SSPs of subscriptions to the SaaS solutions and professional services based on numerous factors including the Company’s overall pricing objectives, geography, customer size and number of users, and discounting practices . The Company uses historical maintenance renewal fees to estimate SSP for maintenance and support fees bundled with software licenses. The Company uses the residual method to estimate SSP of software licenses, because license pricing is highly variable and not sold separately from maintenance and support. Contract balances – Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records an unbilled receivable when revenue is recognized prior to invoicing, and deferred revenue when revenue is recognized subsequent to invoicing. The Company generally invoices customers annually at the beginning of each annual contract period. The Company records a receivable related to revenue recognized for multi-year agreements as it has an unconditional right to invoice and receive payment in the future related to those services. Deferred revenue is comprised mainly of billings related to the Company’s SaaS solutions in advance of revenue being recognized. Deferred revenue also includes payments for: professional services to be performed in the future; legacy BlackLine maintenance and support; Runbook maintenance, support, license, and implementation; and other offerings for which the Company has been paid in adv ance and earns the revenue when the Company transfers control of the product or service. Changes in deferred revenue for the years ended December 31, 2019, 2018, and 2017 were primarily due to additional billings in the periods, partially offset by revenue recognized of $129.3 million, $104.2 million, and $78.2 million, respectively, that was previously included in the deferred revenue balance at December 31, 2018, 2017, and 2016, respectively. The transaction price is generally determined by the stated fixed fees in the contract, excluding any related sales taxes. Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (“contracted not recognized”), which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted not recognized revenue was $366.9 million at December 31, 2019, of which the Company expects to recognize approximately 60% over the next 12 months and the remainder thereafter. Fees are generally due and payable upon receipt of invoice or within 30 days. None of the Company’s contracts include a significant financing component. Assets recognized from the costs to obtain a contract with a customer – The Company recognizes an asset for the incremental and recoverable costs of obtaining a contract with a customer if the Company expects the benefit of those costs to be one year or longer. The Company has determined that certain sales incentive programs to the Company’s employees ("deferred customer contract acquisition c |
